FRANKFURT, germany — Can a ship float and be underwater at the same time? If it has been financed by a European bank, the answer may be yes.

A glut of ships, along with slack demand for shipping in the weak global economy, has slashed the value of cargo ships. According to some estimates, as many as half the cargo carriers on the high seas today may no longer be worth as much as the debt they carry — putting them underwater, in financial jargon. Their resale value is typically lower than the amount borrowed and spent to build them.

Large vessels that might have sold for about $150 million new in 2008 today fetch about $40 million, according to Nicholas Tsevdos, a shipping specialist at CR Investment Management, which helps banks deal with distressed assets. And with cargo fees near record lows, many vessels are not earning enough to make debt payments, either.

As European leaders agonize about how to rescue Cyprus banks, the formerly obscure world of ship finance is a reminder of how much cleanup work still lies ahead for European banks.

The owners of Boulder’s Sterling University Peaks apartments, who this summer were cited for illegally subdividing 92 bedrooms in the complex, have reached an agreement to settle the case for $410,000, the city announced Thursday.